According
to a Nappier news release, the fund had assets of about $23 billion as of
December 31, 2009. The improved performance results were driven by an
economic recovery that led to a stabilized global outlook and significant gains
in the global capital markets, Nappier said.

Nappier said that as investors regained confidence
in credit-related markets, the fund was able to add an allocation to distressed
debt by investing $200 million in the U.S. Treasury’s Public-Private Investment
Program. This investment was designed to
generate strong risk-adjusted returns by investing in residential and
commercial real estate markets at attractive values.

For the year ending December 31, 2009, the State
Employees’ Retirement Fund (SERF), the Teachers’ Retirement Fund (TERF), and
the Municipal Employees’ Retirement Fund (MERF) returned 20.20%, 19.93%, and
18.08%, respectively. The fund’s fiscal
year 2010, which starts July 1, 2009, and ends June 30, 2010, posted six months
of performance through December 31, 2009, of 15.54% for SERF, 15.34% for TERF,
and 13.46% for MERF.